Sectoral distribution, Philippine budget 2012

The Philippine government’s budget is now rising by nearly P200 billion per year. P1.47 B last year, P1.64 B this year, and P1.82 B next year. Next year’s budget/projected GDP ratio will be around 16.5 percent. If budget by local governments are included as they have many other revenue sources that allow them to have larger spending, the government expenditures/GDP ratio would be around 20 percent.

Here is the sectoral distribution of the budget. We removed smaller-budget sectors under Economic Services and Social Services so that readers can easily spot the big budgeted sectors.

Interest payment from the huge public debt of the government remains a big drain. From 2010 to 2012, that item alone averages P328 billion. Like the recently-concluded US debt crisis, future debt crisis of the Philippines will be triggered by ever-rising debt obligations, principal + interest payment. We hope the Philippine government will learn a lesson from the US debt crisis.